additional insured
A person or organization not automatically included as an insured
under an insurance policy of another but for whom the
named insured desires or is required to provide a certain degree
of protection under its insurance policy. A named insured's impetus for providing
additional insured status to others may be a desire to protect the
other party because of a close relationship with that party (e.g.,
wanting to protect church members performing services for the insured
church) or to comply with
a contractual agreement requiring the named insured to do so (e.g.,
project owners, customers, or owners of property leased by the named
insured). Additional insured status is commonly used in conjunction
with an indemnity agreement between the named insured (the indemnitor)
and the party requesting additional insured status (the indemnitee).
Having the rights of an insured under its indemnitor's commercial
general liability (CGL) policy is viewed by most indemnitees as
a way of backing up the promise of indemnification. If the indemnity
agreement proves unenforceable for some reason, the indemnitee may
still be able to obtain coverage for its liability by making a claim
directly as an additional insured under the indemnitor's CGL policy.
See also Additional
insured endorsement;
Additional named insured;
Contractual risk transfer;
Loss
payee; Named insured.
Links for IRMI Online Subscribers
Only:
CLI VI.H;
CPI IV.G;
CRT XI.B;
IWC VI.C;
PRMI 6.G,
13.G;
Add'l Insured Book